Sistema's Eurobond issue delayed

A Eurobond issue of the financial corporation Sistema, which was scheduled for this week, has been postponed for an unidentified period due to some problems with US legislation, the Izvestia newspaper reported. Sistema needs money to purchase a stake in Mobile TeleSystems (MTS) from Deutsche Telekom. Analysts believe that the delay has been of a technical character and the corporation will manage to find money to buy MTS shares. However, some investors might reconsider their decision to buy Sistema's Eurobonds. Last week $300m in bonds were to be issued by Sistema's subsidiary, however in the evening on March 28, Deutsche Bank (one of the lead-managers of the issue) announced a delay in the Eurobond issue. During the corporation's road-show, which finished a week ago, applications worth some $1.1bn were submitted.

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